There have been significant changes to the law that requires reporting and remittance of unclaimed property after it remains unclaimed for its dormancy period. (Uncashed payroll checks must be turned over to the state after a year and most other property after three years.) This report is due to the state by July 1, 2011. Even if you have NO unclaimed property to report, you are now required to submit form 4305, Attestation of Compliance with Unclaimed Property Reporting no later than July 1, 2011.
Fines and Penalties Provided in the Uniform Unclaimed Property Act, Public Act 29 of 1995 (Michigan Compiled Law (MCL) 567.221 et seq.)
• A person who fails to pay or deliver property within the time prescribed by the act shall pay interest at the current monthly rate of one percentage point above the adjusted prime rate, per year, per month, on the property or value of the property, from the date the property should have been delivered.
• A person who willfully fails to render any report or perform other duties required under the act shall pay a civil penalty of $100 for each day the report is withheld or the duty is not performed, but not more than $5,000.
• A person who willfully fails to pay or delivery property to the administrator, as required under the act, shall pay a civil penalty equal to 25 percent of the value of the property that should have been paid or delivered.
• A person who willfully refuses after written demand by the administrator to pay or delivery property to the administrator, as required under the act, is guilty of a misdemeanor and upon conviction may be punished by a fine of not less than $500, nor more than $25,000, or imprisonment for not more than six months, or both.
• The Michigan Department of Treasury is warning entities that failure to comply with the reporting requirements could result in selection for audit, which will cover the last ten reporting years.
The filing deadline has passed and we feel it is important for everyone to know the consequences of failing to report. For more information, give us a call!